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<br />f]; ~i ;~rprise Assoc,iati.on of South Bendo Inc.
<br /><=~-?.~~rs may deduct contributions to you as provided ir; section
<br />}:xe C'odeo Bequests, legacies, devisesF transfers, or gifts
<br />~;: fczr 'your use are deductible fo?° .federal estate and gift
<br />-_ ~:_x_:°R:~osas if they meet the applicable provisions of sections
<br />...,.- ~s.f}5; and. 2522. of the Codea
<br />1?„nar_~s, (including private fourdat.ions) may rely on this ruling
<br />.._,._. he Internal Revenue Service publishes notice to the
<br />_~=~:~°-?°y, I-Towever, if you lose your 509(a) status as shown above,
<br />-„:,%>~:~> rather than private foundations) may not rely on the
<br />.--.>_s~.~°i.cation shown above if they were in part responsible for,
<br />~~:~°,=. awax°e ofo the act that resulted in your loss of such
<br />i:'c'r'_t~~ or they acquired knowledge that the Internal Revenue
<br />___-,-.c.e ;gad given notice that you would be removed from that
<br />__. _:-.~_:i_cationo Private foundations may rely on the classification
<br />:1_c,r,r~ as you were not directly or indirectly control led by them
<br />?:,~; c?_isqualified persons with respect to theme However, private
<br />°;:;,.~.,da-~~icns may not rely on the classification shown above if they
<br />-.-~~ ~:°e d: }cnowledge that the Internal Revenue Service had given
<br />_:= ::hat you would be re.~oved. from that classificaticn~
<br />5:~" your organization conducts fund--raising everts such as
<br />__..-.__?_ dinners, auctions, membership drives, etc., where something
<br />--_ ~ai_u.e is received in return for contributions, you can help your
<br />_.:~-;os~ avoid difficulties with their income tax returns by
<br />~~'~_s'i:in.g them in determining the proper tax treatment of their
<br />~=one:-.~L,7_ions, To do this you should, in advance of the event,
<br />_-..~;-~r.i.ne the fair market value of the benefit received and state
<br />~, ;tour fund-raising materials such as solicitations, tickets,
<br />aeceipts in such a way that your donors can determine how much
<br />i_s deductible and how much is not. To assist you in this, the
<br />_;-nice has issued Publication 1391, Deductibility of Pavnents Mace
<br />~o_Cr~~anizations Conducting Fund-Raising Events. You may obtain
<br />~•.}~.^s of Publication 1391 from your key district office.
<br />:n the heading of this letter we have indicated whether you
<br />r, ~
<br />_..s~::~:i.le Form 990, Return. of Organization Exempt from Income Taxo
<br />)_~_ °us is indicated, you are required to file Form 990 only if your
<br />::_,ss ~~eceipts each year are normally more than $25,0000 1f your
<br />~~_oss ~_eceipts each year are not norally more than $25,000, we ask
<br />i.i-at v./ou establish that you are not required to file Form 990 by
<br />:o~npleLii~g Part I cf that Form for your first year. Thereafter,
<br />~_~ ,~~ ~. I.1 not be required to file a return until your gross receipts
<br />=gin:caed the $25,000 minimum. For guidance in determining if your
<br />;~:c-~s~ receipts are "no rnally" not more than the $25,000 limit, see
<br />]?~ ]~nsructions for the Form 990. If a return is required, it
<br />r,r~:!-~ ~e filed by the 15th day of_ the fifth month after the end of
<br />;re'~t_ry a,-A:nu.al accounting period. A penalty of $10 a day is charged
<br />~~..~ :_,. :cecurn is filed late; unless there is reasonable cause for
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